Connecticut's largest business organization is advocating for more affordable housing to help grow the state's future workforce. The Connecticut Business & Industry Association (CBIA) is backing legislation to bolster housing development.
Take Electric Boat. The submarine-maker hired almost 4,000 new staff in 2022, and now they’re looking to add another 5,000 employees this year.
Peter Myers, CBIA’s public policy associate, said businesses need to work with developers, and receive financial incentives from the state, to help solve the housing issue, so they can grow their workforce.
“And they would get tax credits for doing so,” Myers said. “And those housing developments would be on brownfield sites or in opportunity zones down there in New London or on brownfield sites around there which they would be able to contribute to, designated for their workforce who could live there.”
The cost of the new housing units would break down to 50% market rate, 40% workforce and 10% low income. “And workforce housing is really just 20% less than the prevailing rent, so it’s a little cheaper for the workforce to live there,” he said.
According to CBIA, there are nearly 100,000 job openings in the state and 85% of the state's employers are experiencing difficulties finding and retaining employees because of the lack of housing and the state’s high cost of living.
Since the pandemic, rent prices in Connecticut have increased at least 11% on average.
Myers said two bills being considered would amount to small changes that could add up to real savings for future homebuyers. Legislation would provide property tax abatements of $500 a year for five years for first-time home buyers who use Connecticut Housing Finance Authority loans. Another bill would create a first-time home buyer's savings account that results in tax deductions.
“So, really helping incentivize people to invest into Connecticut and make it a little cheaper to live here,” he said.
